The EV world has gotten more and more competitive over the last few years. It's become saturated with competition and demand is starting to hit its limits, all while at the same time major Chinese names are dominating the industry.
That's why it's not surprising to see another name in the space, Canoo, file for bankruptcy.
The seven-year-old electric vehicle startup has filed for Chapter 7 bankruptcy in Delaware, announcing it will "cease operations immediately." The company is liquidating its assets, citing failed attempts to secure foreign capital and funding from the U.S. Department of Energy's Loan Program Office, according to TechCrunch.
Canoo's bankruptcy filing lists over $164 million in liabilities against $126 million in assets, with hundreds of creditors owed.
This move follows weeks of turmoil, including worker furloughs, the shutdown of its Oklahoma factory, and an inability to deliver more than a few electric vans to customers in 2024. By mid-November, Canoo reported having just $700,000 in cash.
TechCrunch writes that Canoo joins companies like Lordstown and Proterra in bankruptcy. After going public in 2020 and raising $600 million, Canoo produced few vehicles, tested by partners like NASA and USPS. A non-binding 2022 deal with Walmart for 10,000 EVs never materialized.
Canoo, founded in 2017 by ex-Faraday Future executives, initially focused on modular EVs and advanced tech, even attracting interest from Apple. After going public, CEO Tony Aquila shifted focus to commercial fleets and frequently changed manufacturing plans, including unfulfilled moves to Arkansas and Oklahoma.
Aquila's financial firm profited from Canoo, collecting payments for office space, a corporate jet, and loans secured by company equipment. Signs of trouble grew in 2024, with office closures, layoffs, and customer deposit refunds. Canoo ultimately declared bankruptcy, ending its turbulent run.
